Trump Endorses Media Giant: Ex-President Lauds Paramount-Warner Bros. Merger

The highly anticipated megamerger between Paramount and Warner Bros. Discovery officially closed, culminating in the formation of Skydance Corp. President Donald Trump, known for his friendly ties with David Ellison and his father, Larry Ellison, expressed strong approval for the deal. Speaking to reporters on the White House lawn, Trump lauded the merger as "great" and anticipated the new company would be a significant success. His administration's Justice Department had previously given its unconditional stamp of approval to the Paramount-WBD deal in June, clearing a major hurdle early on.

The merger faced its final significant obstacle with an antitrust lawsuit brought by 12 Democratic state attorneys general. This lawsuit aimed to block the Warner Bros. Discovery takeover by Paramount. However, a settlement was reached between Paramount and the states, receiving judicial approval on September 30, which paved the way for the deal's finalization. David Ellison publicly contended that the litigation from the state attorneys general was politically motivated, driven by concerns that he might attempt to transform CNN into a Trump-friendly media outlet. Ellison articulated this belief in an August 4 New York Times op-ed, stating, "I believe this fight is not really about market share... I believe a plainer worry sits beneath the briefs and the news releases: the news. The issue is whether I can be trusted as a steward of Warner’s CNN."

In response to these concerns, Ellison has firmly pledged that journalists at both CNN and CBS News will operate with complete independence, adhering strictly to facts and serving all people, rather than any specific party or cause. Following the merger's closure, Ellison and his co-CEO, Ynon Kreiz, addressed employees at the newly merged Skydance during a companywide town hall. During this event, CNN anchor Anderson Cooper interviewed Ellison, directly asking about staff anxieties regarding potential changes at the network under his ownership. A CNN report indicated Ellison's deep belief in journalism, emphasizing that CBS News and CNN are a "vital part of our democracy." Furthermore, Ellison publicly supported a lawsuit filed by CNN, alongside MS NOW and Politico, against the White House to challenge Trump’s ban on these news outlets.

Ahead of the Paramount-WBD closure, Ellison announced his senior leadership team, confirming that CNN CEO Mark Thompson would retain his position for the foreseeable future. Staffers at CNN had expressed concerns that Bari Weiss, an "anti-woke" media entrepreneur appointed by Ellison as editor-in-chief of CBS News, might see her role expand to include CNN. As a condition of the settlement with the 12-state coalition, the merged Paramount-Warner Bros. will be subject to oversight by a "news editorial independence board." This board, which will include representatives from the involved states, is tasked with establishing "guiding editorial and journalism principles" for CNN and CBS News. Despite this provision, critics have largely dismissed it as a "toothless condition," questioning its efficacy in safeguarding independence. Connecticut Attorney General William Tong, while ultimately signing off on the settlement, voiced his prior advocacy for a complete divestiture of CNN and CBS News.

The relationship between President Trump and the Ellison family has been notably cordial. In April, David Ellison hosted a dinner party in Washington, D.C., to honor Trump and the First Amendment, an event attended by CBS News executives and journalists. David Ellison also attended a state dinner at the White House for visiting Chinese President Xi Jinping. This close association became the subject of controversy when a Paramount shareholder filed a lawsuit in July. The lawsuit alleged that the Ellisons had brokered an "illegal" deal with Trump to secure U.S. governmental approval for the Warner Bros. Discovery takeover. According to the allegations, this quid pro quo involved the Ellisons offering "the opportunity to improperly funnel cash" to the president by settling his legal claims against CNN and allegedly promising the dismissal of CNN anchors disliked by Trump after the WBD takeover.

In response to these serious accusations, a Paramount spokesperson issued a statement, dismissing the lawsuit as merely recycling previously reported and addressed allegations. The spokesperson firmly asserted, "As we’ve said consistently: no commitments from either David or Larry Ellison have been made to any government body, State AG, or federal agency regarding the future of CNN or any other news property, other than the goal to deliver truth-based journalism." This statement aimed to reiterate the company's commitment to journalistic integrity and to dispel any notions of political influence or impropriety in the merger's approval process or the future direction of its news divisions.